On June 4, U.S. Transportation Secretary Sean Duffy released the Federal Railroad Administration (FRA) Compliance Review Report, which found that the California High-Speed Rail Authority (CHSRA)’s high speed rail project is in default of the terms of its federal grant awards. The detailed report, which is over 300 pages, contains 9 key findings including missed deadlines, budget shortfalls, and overrepresentation of projected ridership. The two grants total roughly $4 billion in taxpayer money.
In a letter to CHSRA CEO, Ian Choudri, the FRA noted its report identified a trail of project delays, mismanagement, waste, and skyrocketing costs. The project has received approximately $6.9 billion in federal dollars in roughly fifteen years but has not laid a single high-speed track. Even with continued federal support, the project is far short of the funding needed to finish just a fraction of the track.
CHSRA has up to 37 days to respond, after which the grants could be terminated.
For additional information, contact RCRC Policy Advocate Eric Will.